Insurance sector sees room for more private/public collaboration

by Marlon Madden

President of the General Insurance Association of Barbados (GIAB) Randy Graham is expressing satisfaction that the insurance climate in Barbados remains robust and well regulated.

However, he sees room for increased discussion on the issue of insurance and for greater partnership between government and the private sector. Graham, who is the Chief Executive Officer of Massy United Insurance, told Today’s BUSINESS he believed the insurance industry was currently in a good place in relation to competition and legislation.

“In the form of regulation, I think there is enough in the legislation there to make sure that companies operating in the market are strong companies, that there is competition in the market that allows for both strength in companies but also available options for customers in Barbados and that they can go to various companies,” he explained.

“So, I would say there are no gaps in the framework right now, I think it is just a matter of making sure that we keep a strong industry that can respond in challenging times like in hurricanes and we don’t have any fiscal or financial problems in the sector. That seems to be the focus and that seems to be a good place that we are at,” he added.

However, Graham said what was missing at this stage was more discussion around insurance all year-round and a plan on how government could work closely with insurance companies so it did not have to keep shouldering the burden whenever there is a disaster.

“What I think we really need at this time is to have a national discussion on what role the insurance companies can play with the government and with people in
society to get the cover out there in the wider populous,” said Graham.

“Every year around hurricane season we hear too many houses are uninsured, or every time there is a fire, we hear the house is uninsured and government has to find a way to help the person, which ultimately comes back to the taxpayers. We don’t think it is necessary. We think the insurance sector is best placed to deal with natural catastrophes.

“Governments are not really set up to have to deal with those, every time it happens. So the conversation has to come to the table now as to how do we really get the insurance companies to work along with the government to work along with the populous in a real way to bring something to the table that allows people to get access to insurance and put that in place as quickly as possible so that we don’t keep having this conversation over about the number of uninsured houses and the millions that the government and taxpayers have to look for to rebuild after an event,” he explained.

It is estimated that between 60 and 70 per cent of houses in Barbados are uninsured. Following the passage of a recent freak storm and category one Hurricane Elsa earlier this month, Government has pledged to spearhead the repairing and rebuilding of thousands of homes that were damaged or destroyed.

While a price tag has not yet been placed on the work to be done, it is estimated that it will cost Government millions of dollars, with more than 4,000 residents reporting some form of damage to their structures.

marlonmadden@barbadostoday.bb